| Abstract: | Learning by observing the behaviors and choices of other (referent) firms is an important way for firms to augment their stock of knowledge. However, new ventures face unique challenges with vicarious learning. In particular, their referent firms may not be spatially close, which makes it difficult to collect and make sense of information. In a field study of 175 high‐technology new ventures, we examine and find that distance and the maturity of the legal environments of the observed firms, along with the moderating effect of the size of referent firms, can influence new ventures’ observation and processing of information. Such learning is reflected by the perceived speed of new ventures fulfilling ISO 9000 certification. |
